KARACHI: The State Bank of Pakistan (SBP), in line with its vision-2020, has drafted regulations for electronic money institutions (EMIs) to promote digital payments and provide enabling the regulatory framework to non-banking entities in payments landscape.
These regulations outline minimum requirements for establishment and operations of EMIs. Thereby, addressing the potential risks related to the legal framework of the country, said an SBP statement on Monday.
EMIs are non-banking entities that offer innovative, user-friendly and cost-effective low-value digital payment prepaid instruments like wallets, prepaid cards, and contactless payment instruments including wearables to consumers.
These institutions are usually regulated under the payments and settlement systems laws around the globe. Traditionally, payment instruments in Pakistan are issued by banks with the negligible participation of non-banking entities.
However, having the potential to innovate, these non-banking entities can play a critical role in digitizing different types of payments in the country.
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